Department of Economics and Business Economics

Marketing and Globalization of the Brewing Industry

Research output: Contribution to book/anthology/report/proceedingBook chapterResearchpeer-review

DOI

The globalization of the brewing industry after the turn of the century through a large wave of mergers and acquisitions has changed the structure of the world beer markets. The chapter tracks the development in industry concentrations from 2002 to 2012 and points to high transportation costs for beers and economies of scale at the firm level in advertising and sales efforts as the main factors behind the wave of cross-country mergers and acquisitions. Using firm-level data from the largest breweries, the estimations verify significant economies of scale at the firm level in marketing and distribution costs. Based on information from the Annual Reports of the eight largest breweries in the world, the estimation proved a reduction in these costs of close to twenty percent when doubling the size of the brewing group. This finding verifies that the restructuring of the brewing industry creates significant economies of scale benefits at the firm level to be shared between the merging partners as marketing and distribution costs are very high in this industry.
Original languageEnglish
Title of host publicationBrewing, Beer and Pubs : A Global Perspective
EditorsIgnazio Cabras, David Higgins, David Preece
Number of pages20
PublisherPalgrave Macmillan
Publication year2016
Pages34-53
Chapter2
ISBN (print)978-1-137-46617-4
ISBN (Electronic)978-1-137-46618-1
DOIs
Publication statusPublished - 2016

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